One of the biggest hurdles in buying a home is making sure that you have good/ enough credit. There is no denying that credit cards play a large role in your credit rise or downfall.

In this time of information overload we are fed a lot of “advice” from many avenues and you have to filter out unfounded information. Here are some commonly preached rules about credit cards that just aren’t true:

Myth: DEBT CONSOLIDATION ONTO ONE LOWER INTEREST CARD WILL HELP YOUR SCORE
The fact is that your largest concern is the % of the card you have paid off. If you consolidate your debt onto one card but max out the limit your credit score will lower by at least 80 points immediately. Even though you might feel more organized, it is wiser to continue to pay off your current cards rather than getting closer to a limit on a single card. The best practice is to keep your card to less than 30% of your available limit.

Myth: CLOSING CREDIT CARDS WILL HELP YOUR SCORE
Never close credit cards unless it is an extenuating circumstance like a divorce or removal from an authorized user account that has gone bad. The fact is the more available money you have but are not using the better it is for your score.

Myth: MAKING PAYMENTS ON OLD DEBT WILL HELP INCREASE YOUR SCORE
If a debt is over a year old and you verbally agree to /or make payments, your score will drop immediately. Your best bet is negotiating the debt. Often times the collector will accept 30 to 40 cents on the dollar. Once an agreement has been made, request a deletion letter. These situations are better left untouched until you are able to take care of it completely.

So what does this have to do with home buying? Every step you take in the direction of increasing your score is a step closer to owning you dream home. So stay diligent and proactive!

While the United States is still shrouded in economic uncertainty, mortgage lenders are fearful of borrowers who may default on their loan or commit mortgage fraud. Because of this, many lenders are improving their background checks and fraud-prevention measures by investigating a number of factors such as your credit, place of employment and more.

According to a recent New York Times article, “Mortgages: Triggers of Lender Scrutiny” there are four major triggers in which lenders are looking out for and what you can do about them:

A LARGE BANK DEPOSIT Lenders are required by federal regulators to confirm that funds in an account come from bona fide sources, like a gift from your grandmother for the down payment. “We source it,” Mr. Lipes said — “find out where it has come from.” What constitutes a large deposit? That is based partly on your income, he explained. If you earn $5,000 a month and deposit an extra $10,000 beyond your paycheck, that may be considered oversized. Of course, if you were just married and received a bounty of checks as gifts, you might want have your marriage license on hand as proof, when you are providing your bank account information.

YOUR ADDRESS If you are buying a primary home three hours from Manhattan yet list your employment with a Midtown company, your case may draw scrutiny, said Jason Auerbach, the divisional manager for the Manhattan office of First Choice Loan Services. He suggests getting a letter from an employer noting, for example, that you are authorized to work from home four days a week. Likewise, a couple with three children who are buying a one-bedroom apartment may be scrutinized about whether this will be their principal home. Lenders want to make sure you’re the owner-occupant, not buying as a rental or to flip the property.

NEW OR UNDISCLOSED DEBTS When you’re in the process of buying a home, avoid taking on other debt. “Sometimes borrowers don’t think buying a new car prior to closing a loan is a problem, but it is,” said Carolyn Mitchell, a senior vice president of Aklero Risk Analytics, which provides software for mortgage quality control. Buying a sofa or a furnace on credit could also slow or even scuttle your mortgage closing, depending on your situation, if it pushed your total debt levels beyond acceptable limits.

INCOME ISSUES If you disclose that you earn twice what the average person in your occupation earns, you may need to document that discrepancy. Or if you used to be an independent contractor and were recently hired as a full-time worker, that might raise concerns, Mr. Auerbach said. It is relatively easy, Mr. Lipes added, to invent false documents that inflate incomes, so lenders routinely check with the Internal Revenue Service and other sources.

During summer months, some people sell their home. Many of those individuals will make a profit on the sale and still will not have to pay a single dime of additional income tax to the IRS.

Here are seven tax facts about selling your home.

All tax information provided by IRS.gov

1. Ownership and Use Tests: In general, you are eligible to exclude from your income all or part of any gain from the sale of your main home if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its sale. Refer to Publication 523, Selling Your Home, for the complete eligibility requirements as well as exceptions to the two year rule.

2. Main Home: Your main home is the one in which you live most of the time.

3. Capital Gain Exclusion: If you have a gain from the sale of your main home and you meet the ownership and use tests, you may be able to exclude up to $250,000 of the gain from your income or $500,000 on a joint return in most cases. The exclusion may be claimed each time that you sell your main home, but generally no more often than once every two years.

4. Reduced Exclusion: If you do not meet the requirements to qualify for the $250,000 or $500,000 exclusion, you may still qualify for a reduced maximum exclusion. But you must have sold the home for other specific reasons such as serious health issues, a change in your place of employment, or certain unforeseen circumstances such as a divorce or legal separation, natural or man-made disasters resulting in a casualty to your home, or an involuntary conversion of your home.

5. Reporting the Gain: Do not report the gain of your main home on your tax return unless you have a gain and at least part of it is taxable. Report any taxable gain on Form 1040, Schedule D, Capital Gains and Losses.

6. More Than One Home: If you have more than one home, you can exclude gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.

7. Loss You cannot deduct: a loss from the sale of your main home. If you have a loss on the sale of your main home for which you received a Form 1099-S, Proceeds From Real Estate Transactions you must report the loss on Form 1040 Schedule D, even though the loss is not deductible.

Publication 523, Selling Your Home is available on IRS.gov or can be ordered by calling 800-TAX-FORM (800-829-3676).

HUD homes eligible for the $100 down payment program have all been foreclosed upon by their lenders; the loans involved in the foreclosure were FHA-insured. Other foreclosures on which the loans were not insured by the FHA do not become HUD homes and are not eligible for the $100 down payment program.

There is one catch, finding the right house. As you can imagine finding the right HUD foreclosures in the right neighborhood at the right time can be tough. However, if you get lucky and you can qualify for a FHA loan; you may be a new home owner with only one Benjamin out of your pocket; not a bad way to get into your new home.

Call Henderson Properties 704-544-0253. We are approved by HUD to represent you and would love to help you find a great home at a great price!

Back to school time is usually a catalyst for home sales during the summer but these days more families may be renting homes for awhile before taking the plunge to buy. New research numbers show that a higher percent of relocations are renting for a year, due largely in part to the need to sell their current home before purchasing a new home.

Housing markets that have seen the biggest plunges on home values have topped a new ranking of the best markets for rental-property investors. Looking at other markets, Charlotte is right in the middle with the rising number of rentals. Because home prices are falling and inflation climbing, rental real estate investing offers a promising opportunity for those with strong cash flows. And secondly, the unemployment rate and tougher lending leaves potential buyers renting longer and in need of rental homes.

Henderson Properties, Charlotte’s premier full-service real estate company has recently acquired the rental property portfolio of Biseworld Realty. The portfolio consists of approximately 70 single family and multi-family properties located primarily in North and West Charlotte.

“Our roots are in rental property management and our growth strategy is on course. The rental market is booming right now and services cover the entire spectrum of real estate needs. Biseworld’s portfolio will give us new homes to market to further grow our investment property division,” said Phil Henderson President of Henderson Properties.

The change in the market lately is with relocation. Many of the potential buyers relocating are choosing to rent for a year or so before they buy. Buyers want to make sure they have all issues with their existing home completed before buying, leading them to the booming rental market.

A lender will usually reject a loan application if the appraisal of the property you are selling comes back lower than the asking price. But there are ways to challenge a low-ball appraisal:


What you should do:
Get a copy of the appraiser’s report. You can successfully argue to raise the estimated value if you show that the report overlooks a valuable feature of the home or failed to consider the recent sale of comparable property for a higher price.

Take your case to the loan representative. The lender may be able to override the estimate or order a new report from a different appraiser.

If the appraisal comes in low again, there’s not much more you can do to change their mind.
This may not be an answer you want to hear but you might want to try to renegotiate. If you can come to an agreement for a lower figure, it may be worth your while to avoid the time and cost required to cancel the sale and put the house back on the market. And if the buyer can actually increase their down payment some, the lender may be willing to overlook a low appraisal.

Finally, ask the lender, or get the buyer to ask their lender, for the names of appraisers they know, trust and have on their list of approved appraisers.

You also can check with one of several national appraisal organizations, like the American Society of Home Inspectors (ASHI) for names of local appraisers who are members in good standing. Look for an appraiser who can do it in a timely manner and who has experience in the area you want to buy. This can help speed things along, and get you a better chance of an accurate appraisal.

Whether you’re buying or selling a home, looking for an investment property, or need to relocate, we offer honest, highly personal service and advantages that make real estate rewarding and easy to understand.

New homes and Charlotte properties include town homes, condos and luxury condominiums in the hottest and most affordable city in the USA. Uptown Charlotte offers amazing new restaurants, exciting nightlife, museums, galleries and lovely country sides.

Charlotte properties and homes are becoming more and more affordable in Charlotte, NC. Even though Charlotte remains one of the more stable real estate markets in the nation, the market has dipped enough to allow a slight increase in inventory allowing real estate brokers to pass on more value to buyers with greater affordability. Even lavish communities as Ballantyne, Dilworth, Myers Park, and many other luxury communities have Charlotte properties that are very affordable.

A drastic reduction in mortgage rates, as well as home price reductions/values in the area are giving way to Charlotte properties and luxury home buyers’ dreams. If you’re seeking to make a sound investment in Charlotte properties in the NC area, now is truly the best time in decades to make that investment.

Remember:
It’s impossible to time the real estate market, so it’s better to make your Charlotte home buying decision on factors other than whether you think the market will peak or dip. You can’t know this with certainty except through hindsight.

The first question you should ask yourself before buying a home in Charlotte, NC is if you’re ready for home ownership? Owning a home is a big commitment of time and money. In addition to mortgage and property tax payments, homes need to be maintained, which requires even more money. First-time buyers often overlook this fact, and are caught short of funds when the roof needs repairing or the water heater goes out.

The real estate market fluctuates. You can insulate yourself from swings in the market as long as you’re not caught having to sell in a down market. Historically, residential real estate prices in this country have increased over time. Ideally, you should have at least a 5 to 10 year time frame in mind when you buy a home.

Ready to purchase your home in Charlotte or just seeking information, Please visit our website: Henderson Properties.